1. Copyright © 2011 Pearson Canada Inc. Labour Relations Dessler & Cole Human Resources Management in Canada Canadian Eleventh Edition

2. Copyright © 2011 Pearson Canada Inc. Introduction to Labour Relations Labour Union (union) an officially recognized association of employees practising a similar trade or employed in the same company or industry who have joined together to present a united front and collective voice in dealing with management Labour–Management Relations the ongoing interactions between labour unions and management in organizations Labour Union (union) an officially recognized association of employees practising a similar trade or employed in the same company or industry who have joined together to present a united front and collective voice in dealing with management Labour–Management Relations the ongoing interactions between labour unions and management in organizations 16-2

3. Copyright © 2011 Pearson Canada Inc. Introduction to Labour Relations Collective Agreement (union contract) a formal agreement between an employer and the union representing a group of its employees regarding terms and conditions of employment Collective Bargaining negotiations between a union and an employer to arrive at a mutually acceptable collective agreement Bargaining Unit the group of employees in a firm, a plant, or an industry that has been recognized by an employer or certified by a Labour Relations Board (LRB) as appropriate for collective bargaining purposes Collective Agreement (union contract) a formal agreement between an employer and the union representing a group of its employees regarding terms and conditions of employment Collective Bargaining negotiations between a union and an employer to arrive at a mutually acceptable collective agreement Bargaining Unit the group of employees in a firm, a plant, or an industry that has been recognized by an employer or certified by a Labour Relations Board (LRB) as appropriate for collective bargaining purposes 16-3

4. Copyright © 2011 Pearson Canada Inc. Canada’s Labour Laws: Two General Purposes 1.To provide a common set of rules for fair negotiations 2.To protect public interest by preventing impact of labour disputes from inconveniencing the public 1.To provide a common set of rules for fair negotiations 2.To protect public interest by preventing impact of labour disputes from inconveniencing the public 16-4

5. Copyright © 2011 Pearson Canada Inc. Labour Legislation – Commonalities certification procedures minimum one year collective agreements procedures preceding legal strike/lockout no strikes/lockouts during life of contract interpretation disputes settled by final and binding arbitration prohibition of unfair labour practices labour relations boards to enforce legislation certification procedures minimum one year collective agreements procedures preceding legal strike/lockout no strikes/lockouts during life of contract interpretation disputes settled by final and binding arbitration prohibition of unfair labour practices labour relations boards to enforce legislation 16-5

6. Copyright © 2011 Pearson Canada Inc. Labour Movement in Canada Today Types of Unions Type of Worker Eligible for Membership craft industrial Type of Worker Eligible for Membership craft industrial Geographic Scope international national local Geographic Scope international national local Labour Congress Affiliation CLC CSN AFL-CIO Labour Congress Affiliation CLC CSN AFL-CIO 16-6

7. Copyright © 2011 Pearson Canada Inc. Labour Relations Process 1. Employees decide to seek collective representation 2. The union organizing campaign begins 3. The union receives official recognition 4. Union and management negotiate collective agreement 5. Day-to-day contract administration begins 1. Employees decide to seek collective representation 2. The union organizing campaign begins 3. The union receives official recognition 4. Union and management negotiate collective agreement 5. Day-to-day contract administration begins 16-7

8. Copyright © 2011 Pearson Canada Inc. Management’s Labour Relations Strategy Union acceptance strategy Union avoidance strategy  Union substitution  Union suppression Union acceptance strategy Union avoidance strategy  Union substitution  Union suppression 16-8

9. Copyright © 2011 Pearson Canada Inc. Canada’s Labour Laws: Jurisdiction Provincial/Territorial 90% of labour-management relations Provincial/Territorial 90% of labour-management relations Federal 10% of labour-management relations 16-9

10. Copyright © 2011 Pearson Canada Inc. Current Challenges Facing the Canadian Labour Movement global competition demographics unionization of white-collar employees global competition demographics unionization of white-collar employees 16-10

11. Copyright © 2011 Pearson Canada Inc. Union Membership in Canada, 1991–2008 16-11

12. Copyright © 2011 Pearson Canada Inc.16-12

13. Copyright © 2011 Pearson Canada Inc. Step 1: Desire for Collective Representation job dissatisfaction lack of job security unfair administration of policies perceived inequities in pay lack of opportunity for advancement lack of influence on work-related decisions belief that unions can improve pay and working conditions job dissatisfaction lack of job security unfair administration of policies perceived inequities in pay lack of opportunity for advancement lack of influence on work-related decisions belief that unions can improve pay and working conditions 16-13

14. Copyright © 2011 Pearson Canada Inc. Step 2: Union Organizing Campaign Step 5. Outcome Step 4. Organizing campaign Step 3. Formation of in-house committee Step 2. Initial organizational meeting Step 1. Employee-union contact 16-14

15. Copyright © 2011 Pearson Canada Inc. Union Organizing: Employer Rights express views on unions state position on remaining non-union prohibit union activity on company property/time increase wages in normal course of business gather employees to state company’s position if:  purpose stated in advance  attendance optional  no threats/promises express views on unions state position on remaining non-union prohibit union activity on company property/time increase wages in normal course of business gather employees to state company’s position if:  purpose stated in advance  attendance optional  no threats/promises 16-15

16. Copyright © 2011 Pearson Canada Inc. Step 3: Union Recognition Voluntary Recognition by employer Voluntary Recognition by employer Regular Certification labour union obtains a certificate from the relevant LRB declaring that the union is the exclusive bargaining agent for a defined group of employees Regular Certification labour union obtains a certificate from the relevant LRB declaring that the union is the exclusive bargaining agent for a defined group of employees Pre-hearing Votes an alternative mechanism for certification, used in situations in which there is evidence of violations of fair labour practices early in the organizing campaign Pre-hearing Votes an alternative mechanism for certification, used in situations in which there is evidence of violations of fair labour practices early in the organizing campaign 16-16

17. Copyright © 2011 Pearson Canada Inc. Termination of Bargaining Rights Decertification the process whereby a union is legally deprived of its official recognition as the exclusive bargaining agent for a group of employees Decertification the process whereby a union is legally deprived of its official recognition as the exclusive bargaining agent for a group of employees 16-17

18. Copyright © 2011 Pearson Canada Inc. Step 4: Collective Bargaining process by which a formal collective agreement is established between labour and management union and management must bargain in good faith three steps:  preparation for bargaining  face-to-face negotiations  obtaining approval for proposed contract process by which a formal collective agreement is established between labour and management union and management must bargain in good faith three steps:  preparation for bargaining  face-to-face negotiations  obtaining approval for proposed contract 16-18

19. Copyright © 2011 Pearson Canada Inc. Preparation for Negotiations Both union and management will: gather data on general economic trends analyze other collective agreements conduct an analysis of grievances review existing contract or union’s promises conduct wage and salary surveys at competitor organizations prepare cost estimates of monetary proposals make plans for possible strike or lockout Both union and management will: gather data on general economic trends analyze other collective agreements conduct an analysis of grievances review existing contract or union’s promises conduct wage and salary surveys at competitor organizations prepare cost estimates of monetary proposals make plans for possible strike or lockout 16-19

20. Copyright © 2011 Pearson Canada Inc. Preparation for Negotiations management negotiators will obtain input from supervisors union negotiators will obtain input from union stewards, obtain the company’s financial information, gather demographic information on membership, and obtain input from members management negotiators will obtain input from supervisors union negotiators will obtain input from union stewards, obtain the company’s financial information, gather demographic information on membership, and obtain input from members 16-20

21. Copyright © 2011 Pearson Canada Inc. Face-to-Face Negotiations Location, Frequency and Duration of Meetings negotiations are held at a neutral, off-site location, such as a hotel meeting room, so that there is no psychological advantage for either team and so that interruptions and work distractions can be kept to a minimum each side generally has another room in which intra-team meetings, known as caucus sessions, are held meetings are held as often as either or both parties consider desirable, and they last as long as progress is being made Location, Frequency and Duration of Meetings negotiations are held at a neutral, off-site location, such as a hotel meeting room, so that there is no psychological advantage for either team and so that interruptions and work distractions can be kept to a minimum each side generally has another room in which intra-team meetings, known as caucus sessions, are held meetings are held as often as either or both parties consider desirable, and they last as long as progress is being made 16-21

22. Copyright © 2011 Pearson Canada Inc. Face-to-Face Negotiations Bargaining Zone the area defined by the bargaining limits (resistance points) of each side, in which compromise is possible, as is the attainment of a settlement satisfactory to both parties Distributive Bargaining a win–lose negotiating strategy, such that one party gains at the expense of the other Bargaining Zone the area defined by the bargaining limits (resistance points) of each side, in which compromise is possible, as is the attainment of a settlement satisfactory to both parties Distributive Bargaining a win–lose negotiating strategy, such that one party gains at the expense of the other 16-22

23. Copyright © 2011 Pearson Canada Inc. The Bargaining Zone and Characteristics of Distributive Bargaining 16-23

24. Copyright © 2011 Pearson Canada Inc. Face-to-Face Negotiations Integrative Bargaining a negotiating strategy in which the possibility of win–win, lose–win, win–lose, and lose–lose outcomes is recognized acknowledgement that achieving a win–win outcome will depend on mutual trust and problem solving Mutual Gains (interest-based) Bargaining a win–win approach based on training in the fundamentals of effective problem solving and conflict resolution interests of all stakeholders are taken into account Integrative Bargaining a negotiating strategy in which the possibility of win–win, lose–win, win–lose, and lose–lose outcomes is recognized acknowledgement that achieving a win–win outcome will depend on mutual trust and problem solving Mutual Gains (interest-based) Bargaining a win–win approach based on training in the fundamentals of effective problem solving and conflict resolution interests of all stakeholders are taken into account 16-24

25. Copyright © 2011 Pearson Canada Inc. Contract Approval Process Memorandum of Settlement a summary of the terms and conditions agreed to by the parties that is submitted to the constituent groups for final approval Ratification formal approval by secret-ballot vote of the bargaining unit members of the agreement negotiated between union and management Memorandum of Settlement a summary of the terms and conditions agreed to by the parties that is submitted to the constituent groups for final approval Ratification formal approval by secret-ballot vote of the bargaining unit members of the agreement negotiated between union and management 16-25

26. Copyright © 2011 Pearson Canada Inc. Third Party Assistance and Bargaining Impasses Conciliation the use of a neutral third party to help an organization and the union representing a group of its employees to come to a mutually satisfactory collective agreement Mediation the use (usually voluntary) of a neutral third party to help an organization and the union representing its employees to reach a mutually satisfactory collective agreement Conciliation the use of a neutral third party to help an organization and the union representing a group of its employees to come to a mutually satisfactory collective agreement Mediation the use (usually voluntary) of a neutral third party to help an organization and the union representing its employees to reach a mutually satisfactory collective agreement 16-26

27. Copyright © 2011 Pearson Canada Inc. Third Party Assistance and Bargaining Impasses Strike the temporary refusal by bargaining unit members to continue working for the employer Strike Vote legally required in some jurisdictions, it is a vote seeking authorization from bargaining unit members to strike if necessary a favourable vote does not mean that a strike is inevitable Strike the temporary refusal by bargaining unit members to continue working for the employer Strike Vote legally required in some jurisdictions, it is a vote seeking authorization from bargaining unit members to strike if necessary a favourable vote does not mean that a strike is inevitable 16-27

28. Copyright © 2011 Pearson Canada Inc. Third Party Assistance and Bargaining Impasses Picket stationing groups of striking employees, usually carrying signs, at the entrances and exits of the struck operation to publicize the issues in dispute and discourage people from entering or leaving the premises Boycott an organized refusal of bargaining unit members and supporters to buy the products or use the services of the organization whose employees are on strike in an effort to exert economic pressure on the employer Picket stationing groups of striking employees, usually carrying signs, at the entrances and exits of the struck operation to publicize the issues in dispute and discourage people from entering or leaving the premises Boycott an organized refusal of bargaining unit members and supporters to buy the products or use the services of the organization whose employees are on strike in an effort to exert economic pressure on the employer 16-28

29. Copyright © 2011 Pearson Canada Inc. Third Party Assistance and Bargaining Impasses Lockout temporary refusal of a company to continue providing work for bargaining unit employees involved in a labour dispute, which may result in closure of the establishment for a time Wildcat Strike a spontaneous walkout, not officially sanctioned by union leadership, which may be legal or illegal, depending on its timing Lockout temporary refusal of a company to continue providing work for bargaining unit employees involved in a labour dispute, which may result in closure of the establishment for a time Wildcat Strike a spontaneous walkout, not officially sanctioned by union leadership, which may be legal or illegal, depending on its timing 16-29

30. Copyright © 2011 Pearson Canada Inc. Third Party Assistance and Bargaining Impasses Arbitration the use of an outside third party to investigate a dispute between an employer and union and impose a settlement Interest Arbitration the imposition of the final terms of a collective agreement Interest Dispute a dispute between organization and union representing employees over terms of a collective agreement Arbitration the use of an outside third party to investigate a dispute between an employer and union and impose a settlement Interest Arbitration the imposition of the final terms of a collective agreement Interest Dispute a dispute between organization and union representing employees over terms of a collective agreement 16-30

31. Copyright © 2011 Pearson Canada Inc. Collective Agreement: Typical Provisions union recognition union security/checkoff no strikes or lockout management rights arbitration union recognition union security/checkoff no strikes or lockout management rights arbitration 16-31

32. Copyright © 2011 Pearson Canada Inc. Step 5: Contract Administration seniority and discipline issues tend to be the major sources of disagreement between union and management Seniority length of service in the bargaining unit Discipline most collective agreements restrict an employer’s right to discipline employees by requiring proof of just cause for the disciplinary action imposed disciplinary issues must be handled in accordance with the terms of the collective agreement and backed by carefully documented evidence seniority and discipline issues tend to be the major sources of disagreement between union and management Seniority length of service in the bargaining unit Discipline most collective agreements restrict an employer’s right to discipline employees by requiring proof of just cause for the disciplinary action imposed disciplinary issues must be handled in accordance with the terms of the collective agreement and backed by carefully documented evidence 16-32

33. Copyright © 2011 Pearson Canada Inc. Grievance Resolution and Rights Arbitration Grievance a written allegation of a contract violation, filed by an individual bargaining unit member, the union, or management Grievance a written allegation of a contract violation, filed by an individual bargaining unit member, the union, or management 16-33

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35. Copyright © 2011 Pearson Canada Inc. Impact of Unionization on HRM building effective labour-management relations instituting an open-door policy extending the courtesy of prior consultation demonstrating genuine concern for employee well-being forming joint committees, holding joint training programs meeting regularly using third party assistance building effective labour-management relations instituting an open-door policy extending the courtesy of prior consultation demonstrating genuine concern for employee well-being forming joint committees, holding joint training programs meeting regularly using third party assistance 16-35